1. Field of the Invention
This invention relates to the gaming industry and, more particularly, to a method of wagering using the outcome of horse/dog races, jai alai games, or the like, as at least a part of a wagering base. The invention is also directed to a wagering system of the type through which the inventive wagering method can be practiced.
2. Background of the Invention
The financial impact of legal gaming on local, national, and international economies is staggering. One source has estimated that, in 1992, Americans spent more on lotteries, race tracks, casinos, and the like, than on movies, books, amusement attractions and recorded music collectively. This same source has estimated that more Americans went to casinos than attended major league baseball games in the U.S. in the year 1993.
The financial heart of the casinos is the slot machine, which has been drawing an increasing percentage of wagers in casinos. Aside from the versatility that modem slot machines afford, they are desirable because they appeal to all levels of gambling expertise. Novices need not contend with the embarrassment of not knowing the mechanics of a particular game, nor does the novice need to study probabilities to make a calculated wager. The intimidation by the table games, the operators thereof, and other observing players has discouraged many players from participating in table games. With a slot machine, on the other hand, the individual need only operate a switch through a button or lever, with the results being entirely random and beyond the operator's control. Slot machines are also desirable because they are commonly set up in state-of-the-art facilities which are highly attractive to the bettor.
The success of the slot machine has had a devastating effect on live track revenues from pari-mutuel betting. Existing legislation in most states has precluded the location of slot machines and other casino games on track premises. These tracks have been relegated to a one dimensional identity, which has resulted in a migration of gamers to casinos. While off-track betting has breathed some life into pari-mutuel betting, many tracks have closed or are anticipating closure in the very near future due to lowering profitability.
The tracks are handicapped by having higher commissions (18-35%) than casinos (0.5% to 11%). Still further, success at a track generally requires extensive study of both race forms and race results as well as an intimate understanding of handicapping. Added to this is the public perception that many track races are "fixed". Still further, many race tracks have undesirable, antiquated facilities, causing people interested in live races to instead frequent off-track facilities.
It is clear that to halt and reverse the downward trend at race tracks, some stimulus must be given to bettors, in the form of more and different betting opportunities, increased potential winnings, etc. Some tracks have already experienced a financial turnaround attributable largely to the legalization of slots thereat.
However, there is an ongoing battle between legislatures that respect the public sentiment to resist the expansion of gambling and lobbyists for the racing industry that see slot machines as a key to survival of these tracks. Survival of race tracks is in the interest of not only those that own these facilities but also of those in peripheral employment. One study by the American Horse Council Federation estimated that there are in excess of seven million participants as horse owners, service providers, and employees, exclusive of spectators. This same study estimated that the horse industry produces goods and services valued at over 25 billion and pays nearly two billion in taxes on all government levels. Since legislative action to permit slot machines and other games is not imminent in many jurisdictions, some remedy for the current race track crisis is necessary.